The determinants of household income in Afghanistan: case study of Samangan province

Abstract

In this study the determinants of household income in Afghanistan: case study of Samangan province has been researched, In the literature review, generally the factors affecting household income in developing and undeveloped countries have been greatly examined. In this study, bachelor degree, high school, household size and over the age of 25 have been taken as the variables affecting total household income in Samangan province. For this purpose, firstly in order to know weather, the variances of the predication determined by regression remain constant or differ heteroscedasticity test was run and the result showed that there is no heteroscedasticity in our model, also by running Ramsey Reset test we found that our model is well-fitted. According to regression results all variables except household size have significantly affect household income in Samangan province. If we subtilize on the result, a person with having bachelor degree in Samangan province can affect his or her total household income, it means that a person with bachelor degree can affect 14.9 percent total household income. A person with having high school degree in Samangan province can affect his or her total household income about 15.2 percent. if a household increase with one person over the age of 25 it can affect total household income approximately 24.3 percent. But household size has negative affect on total household income it means by increasing one person in the family, total household income decreases -4 percent.